Proposing an amendment to the Constitution of the United States to provide for balanced budgets for the Government.

Proponents argue a balanced-budget amendment would enforce fiscal discipline, prevent generational debt accumulation, and restore market confidence in U.S. creditworthiness. Critics and non-partisan analysts counter that the amendment would eliminate the federal government's ability to borrow countercyclically during recessions, forcing pro-cyclical cuts that deepen downturns; eliminate the automatic stabilizers (unemployment benefits, Medicaid expansion) that cushion economic shocks; and force politically explosive choices between raising taxes or cutting entitlements or defense. The CBO and most mainstream macroeconomists (across the political spectrum) have concluded that rigid balanced-budget rules increase economic volatility and restrict policy tools during emergencies. The amendment's war, emergency, and natural-disaster exceptions acknowledge this risk but create incentives to overuse emergency declarations to escape the constraint.